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Anyone Seen Tether’s Billions?

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Re: Anyone Seen Tether’s Billions?

#71

Post by fleddr »

CPLX wrote: post #66
xboxnolifes wrote: post #62

Earlier quoted context omitted.

And just like many stocks that don't plan to ever offer dividends.

There's another use case for those stocks. You can buy a whole bunch of them and then you get to run the company. If you buy enough GM stock eventually you can give all your friends and family members Corvettes for Christmas. Stock actually represents an enforceable claim on wealth that exists in the real world. Crypto not so much.

Both the typical stock holder and crypto holder see a number on screen and hope it goes up. That's it. Most stock trading is done by algorithms, not even people.

A typical stock holder can never claim any underlying asset nor do they have voting rights, so you're really stretching.

The difference is simply in risk appetite. People are going to keep drinking Coca Cola at large scale so owning their stock is low risk. But also low return.

Crypto is high risk, extremely high return. There's a sizable chance to lose your money but a larger chance to get returns that are astronomical. I'm talking 5x - 10x in mere months.

Re: Anyone Seen Tether’s Billions?

#72

Post by NelsonMinar »

jkhdigital wrote: post #57
NelsonMinar wrote: post #38

Earlier quoted context omitted.

I'm not sure I follow your short structure but you're mentioning other cryptocurrencies. Is there a clean bet where I sell Tethers and get dollars? (USDC are not dollars.)

So convert the USDC to dollars and withdraw the dollars. Done.

Like I said, USDC is not dollars. If you're betting on Tether collapsing you sure as hell aren't going to take payment on that bet in USDC.

Re: Anyone Seen Tether’s Billions?

#73

Post by jkhdigital »

arcticbull wrote: post #40
impostervt wrote: post #31

People have been yelling about Tether for years, myself included. But nothing seems to stop it. Not lawsuits, not major news articles. The conclusion I draw is that, yes, the game is rigged - AND EVERYONE IS OK WITH IT. As long as it's making everyone money, no one will really complain. What I also find interesting, is that if tether ever DOES crash, the result might be a big boost for Bitcoin. If you hold Tether, an…

Re your first claim it just takes time. Re your second claim, that’s a common misconception. The price of bitcoin would skyrocket against USDT but pancake against USD. Who in their right mind would sell their (actually worth USD) Bitcoin for your worthless Bahamian IOUs? Absolutely nobody. So you’ll see a massive skyrocket against USDT and as soon as people realize what’s going on, it’ll go no-bid. RIP. Then the ensu…

You bring up a very important but often overlooked point about market panics: the problem is not really everyone rushing for the door, it is market makers pulling bid liquidity so that “normal” selling volumes tank the price (which triggers the avalanche).

Re: Anyone Seen Tether’s Billions?

#74

Post by throaway6942 »

xboxnolifes wrote: post #62
pionar wrote: post #51

Earlier quoted context omitted.

> Well, like all crypto you can buy it and hope it goes up in value :) So, speculation. That's what all crypto is for.

And just like many stocks that don't plan to ever offer dividends.

tbh, Solana does offer "dividends" in the form of PoS rewards!

Re: Anyone Seen Tether’s Billions?

#75

Post by throaway6942 »

CPLX wrote: post #47
fleddr wrote: post #46

"Solana, up 9,801% in 2021 for seemingly no reason at all" No reason at all, huh? Anybody with even a remote interest in crypto knows why Solana has exploded. It's L1 season and Solana is a direct competitor to ETH, which suffers from high usage fees. Every other L1 has exploded in value. As said, L1 season. These kind of statements make me suspect the author never used crypto in their life. The cultural gap between…

I'll bite. What can I use Solana for?

few things I do on Solana:

1. Lend USDC and earn higher interest rate than my bank using https://mango.markets.

2. Trustlessly swap crypto using app.saber.so/#/swap.

3. Occasionally buy NFTs from artists I want to support.

Re: Anyone Seen Tether’s Billions?

#76

Post by cinntaile »

iSnow wrote: post #29

Does crypto do anything but cause troubles? If it's not actively destroying the environment, then it's endangering financial stability. How does the government not step in here?

Any economic activity is basically actively destroying the environment though. The big difference is that there are a few supply chain steps that get bypassed before value is created. I know I know, someone will take issue with that and say that no value is created with crypto when a coin gets minted and the rewards are distributed while value is created along each supply chain step when you manufacture a car. But if it wasn't creating value people wouldn't do it at this scale.

Re: Anyone Seen Tether’s Billions?

#78

Post by TheAlchemist »

rossdavidh wrote: post #22

The biggest news, buried near the bottom: "After I returned to the U.S., I obtained a document showing a detailed account of Tether Holdings’ reserves. It said they include billions of dollars of short-term loans to large Chinese companies—something money-market funds avoid. And that was before one of the country’s largest property developers, China Evergrande Group, started to collapse. I also learned that Tether ha…

It's also very strange that he don't specify how many 'billions' - could be 2, or ... most probably 69 billions $.

Re: Anyone Seen Tether’s Billions?

#79

Post by BLKNSLVR »

fleddr wrote: post #69
CPLX wrote: post #67

Earlier quoted context omitted.

Yes this all sounds accurate to me. The problem is as a society this isn't a positive thing, and we should put some energy into stopping runaway gambling fads because they are highly destructive when it all comes crashing down. And it always does.

I'd prefer society puts more energy into a more balanced, sane and stable economy and financial system. To address the actual disease rather than the symptoms. But I'll leave it at that.

Well said right the way through.

The other thing cryptocurrencies potentially offer is an alternative financial system to the status quo. There are lots of bugs to be worked out, but it's well on its way, and Solana and Ethereum (as only two examples of many) have the ability to act as the platform upon which these financial services can be built.

Re: Anyone Seen Tether’s Billions?

#80

Post by trashcan_ »

arcticbull wrote: post #8
throwoutway wrote: post #7

If this goes on for a few more years, with broader investment from traditional investors (ETF), when Tether collapse I half-suspect that the cryptocurrency markets will bring the NYSE down with it in the fall as people sell to cover losses

The last time Bitwise tried to list an ETF, they revealed to the SEC that 95% of all bitcoin trading volume was fake. If the SEC permits a real BTC ETF that would represent a serious failure on their part, IMO, and I agree the potential for Tether contagion would increase materially. [1] [edit] this financial cancer can’t get excised quickly enough. The longer we wait the more will get hurt. [1] https://cointelegraph…

I don't know why people don't understand this. There was a twitter spaces a few weeks ago after one of these ETF delays where a bunch of bigwigs pushing these ETFs seemed clueless or willfully ignorant of this fact. Its just pathetic.
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